Tuesday was marked by continuous selling of precious metals by jewellers and stockists, in sync with weak global trends. This led to gold prices falling in New Delhi by ₹1,200 to settle at ₹1,00,170 per 10 grams, said All India Sarafa Association.
The precious metal of 99.9 per cent purity had closed at ₹1,01,370 per 10 grams in the previous market session. Gold of 99.5 per cent purity, meanwhile, dipped below the ₹1 lakh mark, falling ₹1,100 to ₹99,450 per 10 grams (inclusive of all taxes). It had settled at ₹1,00,550 per 10 grams on Monday.
Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said traders were re-evaluating the likelihood of a full-fledged war between Iran and Israel.
“Gold corrected further on Tuesday as traders re-evaluated the likelihood of a full-scale regional war between Israel and Iran. This shift follows reports suggesting that Iran is actively pursuing a diplomatic resolution to its escalating conflict with Israel. The potential for a fragile truce has fostered a bearish sentiment among gold traders,” he said.
However, silver prices went up by ₹100 to ₹1,07,200 per kilogram (inclusive of all taxes) on Tuesday. In the previous session, the white metal had ended at ₹1,07,100 per kg.
Globally too, spot gold was trading lower at USD 3,380.65 per ounce.
Rahul Kalantri, Vice President, Commodities, Mehta Enquities, said gold was witnessing profit-taking. “Gold is trading negative despite escalation of conflict in the Middle East and the precious metal witnessed profit-taking at higher levels by the investors,” he said.
Meanwhile, spot silver went up 0.44 per cent to USD 36.47 per ounce in the international markets.
Kalantri said silver prices also came off day’s high ahead of the US Federal Reserve’s monetary policy meeting. However, global uncertainty and geopolitical tensions could support the prices of precious metals.
Abans Financial Services’ Chief Executive Officer Chintan Mehta said, “On the economic front, investors will watch for US macro data, including May’s retail sales and industrial production data later in the day to gauge the strength of the US economy”.
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